Many people might wonder, “I want to live on my own, but will being a freelance worker impact my chances of passing the rental screening process?” or “Are there any tips for successfully navigating the rental screening?”.
The bottom line is that freelancers or part-time workers can rent a property if they successfully pass the screening process. However, it can be more challenging compared to full-time employees.
In this article, we’ll share 7 tips to help freelancers pass the rental screening, provide insights into typical rent settings, and highlight key considerations for maintaining financial stability while working part-time.
Village House offers over 1,000 affordable and excellent properties across Japan, and we welcome applications from part-timers or freelancers who want to find properties. Visit our website to explore your options.
Even freelancers can rent an apartment
The screening process for renting a property involves approval from the rent guarantor company, the management company, and the landlord.
Unlike full-time employees, part-time and non-regular employees may face job insecurity due to the company’s circumstances. Therefore, freelancers may face a higher risk of failing the screening than full-time employees due to concerns about their stability.
Here’s an overview of the criteria used in the screening process:
Rent Guarantor Company:
- Whether or not you have the ability to pay the rent
- Availability of a guarantor to cover rent payments in case of default
Management Company:
- Whether or not you will cause trouble for the landlord and other residents
- Whether or not you will properly manage the property
Landlord:
- Risk of defaulting on rent or having issues with other residents
- Whether or not you have good manners and character
7 tips for freelancers to pass the rental screening process
1. Budget your rent to be within a quarter of your take-home pay
Rent is generally considered to be around one-third of your income. However, as a freelance worker, it’s prudent to aim for a rent of no more than one-quarter of your take-home pay. This approach improves your chances of passing the screening process. Remember, rent often includes management fees and common expenses.
Take-home pay is the amount you receive after deductions for social insurance and taxes. Base your calculations on this net amount to better manage your living expenses.
2. Secure a guarantor who is a relative with a stable income
Having a guarantor with a stable income can significantly enhance your credibility with the management company and landlord. This added layer of security makes it easier for freelance workers to pass the rental screening. If a freelance worker wants to rent a property, using a rent guarantor company and having a financially stable co-signer will make it easier to pass the screening process.
3. Sign a proxy rental agreement under a parent’s name
A proxy rental agreement is a method where someone other than the tenant signs the lease agreement. This method is commonly used when minors or students rent a room, but it is also effective for freelance workers renting a room.
A parent is the most suitable person to act as the proxy signer. The screening criteria, such as income, are almost the same as for a co-signer; however, if someone who is not closely related acts as the proxy signer, the application is more likely to be rejected.
However, proxy rental agreements can only be used with the landlord’s permission. Signing a proxy rental agreement without authorization constitutes a breach of contract, so it is essential to consult with the real estate company beforehand.
4. Opt for a guarantor company with a high approval rate
Guarantor companies fall into three categories: independent, LICC (a group of regional guarantor companies in Japan that work with local banks and financial institutions), and credit-based. Independent guarantor companies are often recognized for having higher approval rates, especially when the rent is reasonable relative to your income. If you choose to use an independent credit finance company, ask your real estate agent to recommend properties where such companies are accepted.
5. Demonstrate financial stability with savings
Even if your income is unstable, having substantial savings can help you pass the screening process. Aim to have savings equivalent to at least 24 months of rent for the property you’re interested in. This shows financial stability and preparedness.
Keep in mind, though, that the difficulty of passing the screening can still vary depending on the management company and landlord’s policies.
6. Provide clear information about your employment status
Communicate your employment situation transparently. For example, inform them if you’re currently working part-time but are actively seeking full-time employment, or whether you have a full-time job offer starting soon.
Even if you pass the screening of the guarantor company, there is still a concern that the landlord or real estate company may have doubts about your income, which could result in failing the tenant screening. It is therefore important to share any positive information that could strengthen your application.
7. Make a good impression through your appearance and responses
The personal demeanor of the prospective tenant is communicated to landlords and management companies through the real estate agency. Therefore, when visiting the agency or attending property viewings, be sure to present yourself well and respond with a polite, appropriate attitude.
The landlord or management company representative may be present during the application or viewing process. It is crucial to leave a good impression on all parties involved in the screening process, including phone interactions.
On the other hand, displaying an overly aggressive attitude during negotiations might raise concerns about potential issues during your tenancy or when moving out, increasing the likelihood of failing the screening. So, be cautious in your approach.
How to find affordable properties
If you want to keep your rent lower than the market rate, focus on essential requirements and be willing to compromise on less critical aspects. Properties that are popular and desired by everyone tend to have higher rents and stricter screening processes.
On the other hand, properties that are a bit farther from the station or older tend to have lower rents. Additionally, consider the following types of properties, as they usually have more affordable rent.
However, be cautious not to compromise too much on your must-have conditions, as this can lead to difficulties in your living situation after you move in. Therefore, it’s advisable not to remove your non-negotiable conditions.
- Areas with low rent
- Properties that are a 15-minute walk or more from the nearest station
- Older properties
- 3-point unit baths
- Poor sunlight exposure
- Properties along roads or train lines
- Near bustling shopping districts
- Properties with issues (properties with a history of accidents)
Money-saving tips for living a stable life as a freelance worker living alone
Cook at home
Cooking at home is an excellent way to save money on food. Eating out frequently inevitably leads to higher costs. Try cooking extra rice or meals and freezing portions for later or making extra dinner to have leftovers for lunch. These strategies can greatly cut down on your food expenses.
Review fixed expenses such as communication and utility bills
Take a closer look at your monthly fixed expenses, such as communication, utility, and water fees. Although these are essential, there are often ways to reduce them. For example, minimize utility usage to only what you truly need.
Also, review your insurance policies and any subscriptions you hold and cancel those you no longer use.
Be conscious of water and energy conservation
To keep your water and energy costs low, avoid wasteful practices and look into cost-effective plans. For example, if you’re away during the day, consider a plan with lower electricity rates during off-peak hours. Alternatively, opting for a flat-rate electricity plan might be more economical if you work from home.
It is necessary to make small adjustments to conserve water, such as reusing collected hot water for laundry.
Utilize flea market apps
Flea market apps can be a treasure trove for finding affordable cosmetics, clothing, accessories, and more. They offer a variety of new and slightly used items at lower prices. Additionally, you can use these platforms to sell items you no longer need, helping you earn extra money. Leveraging these resources can be a smart way to manage your budget effectively.
Village House offers over 1,000 rental properties across Japan, with rents starting from the 20,000-yen range. Even part-time or freelance workers are welcome to apply, so please feel free to contact us.
Related articles:
- All the Documents You Need when Signing a Rental Contract and Applying for an Apartment
- Guide to the Apartment Lease Signing Process
- A Foreigner’s Guide to Clearing the Tenant Screening Process
- Who Should You Choose as a Guarantor? Improve Your Chances to Pass Rental Apartment Application Screening!
Hello, I’m Machiko Doi, a freelance writer who writes about housing and living in Japan.
I live in an 80-year-old house that I inherited from my grandparents along with my two shelter cats and daughter.
We live a relaxed life while repairing the house.
I like to cook vegetables from the garden and fresh fish caught by my father, and enjoy them with cold beer on a hot day or hot sake on a cold day.